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Ownership Concentration, Corporate Governance and firm Performance in Textile Sector of Pakistan

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Ownership Concentration, Corporate Governance and firm Performance in Textile Sector of Pakistan
Course Title
Business research methods

Assignment
Research proposal
Ownership Concentration, Corporate Governance and firm Performance in
Textile Sector of Pakistan

Submitted to
Dr.Yasir Kamal

Submitted by
Farhan Akbar

Program
Msc. Finance

Semester
3rd

Dated:
5th of May 2014

Table of Contents

1. Introduction...........................................................................................................3
2. Literature Review……………….……………………………………………………...3
3. Objective of Research...……………………………………………………………….4
4. Research Methodology………………………………………………………………..4
4.2 Data type and sampling……………………………………………………………...5
5. Analysis of data………………………………………………………………….……...5
6. References……………………………………………………………………………..6

1. INTRODUCTION:
The definition of corporate governance differs from country to country. For the case of Continental European countries such as Germany, the term refers to all the stakeholders of a firm while for Anglo-American countries corporate governance focuses on generating a fair return for investors (see Goergen, Manjon and Renneboog, 2005). The corporate governance devices utilized to ensure economic efficiency include among others shareholder monitoring, creditor monitoring, executive remuneration contracts, dividend policy and the regulatory framework of the corporate law regime and the stock exchanges.
The increasing international integration, deregulation and technological development and the resulting challenges are calling for a review of national corporate governance systems. Countries that are in dire need of external financing require stronger and effective corporate governance systems. Pakistan’s failure to attract external finance
– some of it from foreign investors – may be largely attributed to weak investor protection.
The nature of relation between the ownership structure and corporate governance structure



References: Agrawal, A., and Mandelker, G. 1990. Large Shareholders and the Monitoring of Managers: the Case of Antitakeover Charter Amendments Barbosa, N., and Louri, H. 2002. On the determinants of multinationals’ ownership preferences: Evidence from Greece and Portugal, International Journal of Industrial Economics 20: Berle, A., and Means,G. (1932) The Modern Corporation and Private Propert, New York: Macmillan. Burkart, M., 1997. Large shareholders, monitoring, and the value of the firm. The Quarterly Journal of Economics 112 (3), 693–729. Cheema, A., Bari, F., and Saddique, O. 2003. Corporate Governance in Pakistan: Ownership, Control and the Law, Lahore University of Management Sciences, Lahore. Chibber, P. K., and Majumdar, S. K. 1999, Foreign Ownership and Profitability: Property Rights, Control, and the Performance of Firms in Indian Industry, The Journal of Law and Chibber, P.K., and Majumdar, S.K. 1999. Foreign ownership and profitability: property rights,control and the performance of firms in Indian industry Choi, J.J., and Yoo, S. 2005. Foreign investment and firm performance. Discussion Paper, Korean Institute of International Economic Policy. Chirinko, B., Ees, H.V., Garretsen, H., and Sterken, E. 1999. Firm performance, financial instititions and corporate governance in the Netherlands Claessens, S., Djankov, S., and Pohl, G. 1996. Ownership and Corporate Governance: Evidence from the Czech Republic 23 Claessens, S., and Djankov, S., 1999 the Czech Republic. CEPR Discussion Paper No. 2145. Claessens, S., Djankov, S., and Lang, L. 2000. The Separation of Ownership and Control in East Asian Corporations, Journal of Financial Economics 58: 81-112. Companies Ordenence, XLVII of 1984, 1984. P.L.D. Publishers, Lahore. Daily, C.M., Dalton, D.R., and Rajagopalan, N. 2003. Governance through ownership: centuries of practice, decades of research Demsetz, H., Lehn, K., 1985. The structure of corporate ownership: Causes and consequences. Doidge, C., Karolyi, G.A., Lins, K.V., and Stulz, R.M. 2005. Private benefits of control, ownership, and the cross-listing decision Durnev, Art and E. Han Kim (2006) To Steal or Not to Steal: Firm Attributes, Legal Environment, and Valuation, Journal of Finance, vol LX(3), 1461-1493. Dzierzanowski, M and Tamowicz, P. 2004. Ownership and control of Polish corporations.Corporate Ownership and Control 1: 20-30. Fama, E., 1980. Agency problems and the theory of the firm. Journal of Political Economy 88: 288-307. Faccio, M., Lang, L. 2002. The ultimate ownership of Western European corporations. Journal of Financial Economics 65: 365– 395. Feinberg, R.M. 1975. Profit maximization vs. utility maximization. Southern Economic Journal 42: 130-134. Gedajlovic, E.R., and Shapiro D.M. 2002. Ownership structure and firm profitability in Japan.

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